Fair Trade: A Sustainable Economic Alternative for Latin America and the Caribbean?

Abstract

The proposal to implement alternative trade practices and relations arises from the need to modify international trade rules, which are considered unfair to small producers and harmful to the environment. In this context, Fair Trade formally emerges as a movement that later evolves into an economic model aimed at benefiting local producers and vulnerable groups in the Global South, allowing them to integrate into international market value chains with support from the Global North. For Latin America and the Caribbean, this proposal has been implemented by local producer collectives and organizations in partnership with importing companies and organizations, using regional and international bodies to facilitate certification and trade processes, based on a set of objectives and principles established by the World Fair Trade Organization (WFTO). Based on this premise, this article aims to explain the extent to which fair trade is a favorable and sustainable economic alternative for Latin American and Caribbean countries by examining its global and regional origins; its objectives and principles; the stages and actors involved; the main products exported by the region; and the economic, social, and environmental impacts of these trade relationships, with the goal of identifying critiques, challenges, and opportunities for its strengthening and effective integration.